Capital markets never speculate on “what if a blockbuster hits” — they always look at the downside protection first.
CategoryReading Notes
Project A’s annualized return ranges from a minimum of 10% to a maximum that might be just double. Project B’s annualized return could be as low as -90%, but its ceiling might be hundreds of times higher.
In reality, do you think more people invest in A or B?
Everyone does—it’s the same pattern. People gravitate toward certainty. Among all things, certainty is the most precious, and also the easiest to exploit for scams.